In today's digitally-driven world, the specter of cyberattacks looms large over organisations. Recognising this growing threat, many companies have sought refuge in cyber insurance policies. However, insurers are becoming increasingly discerning when it comes to defining a "secure organisation," setting higher standards for eligibility. In this blog post, we'll delve into the shifting landscape of cyber insurance and why it's imperative for organisations to enhance their cybersecurity awareness and practices to qualify for coverage.
The Rising Significance of Cyber Insurance
Netwrix' 2023 Hybrid Security Trends Report reveals that a substantial 59% of organisations either already possess a cyber insurance policy or plan to acquire one within the next year. This statistic underscores the heightened awareness among businesses regarding the need to shield themselves from the financial ramifications of cyberattacks.
The world of cyber insurance has evolved significantly in recent years. Insurers have been compelled to adapt swiftly to the ever-changing dynamics of this sector. Today, they understand that to adequately safeguard their insured organisations, a robust security posture is imperative, encompassing an array of security measures.
The Responsibility on Organisations
A prominent trend within the cyber insurance landscape is the increasing onus on organisations to fortify their security measures. Unfortunately, many organisations fall short of possessing all the requisite security controls, which can lead to elevated premiums or even a refusal of coverage. As per Netwrix' report, 28% of organisations had to implement security changes to reduce premiums, while 22% had to make these changes simply to qualify for a policy.
These requirements underscore the necessity of a comprehensive security posture. It's not limited to basic defenses like firewalls and antivirus software; it extends to the implementation of a wide spectrum of security measures to guard against the multifarious threats present in the digital realm.
Authentication, Privileged Access, and Beyond
Netwrix' report suggests that some of the security solutions organisations must adopt relate to authentication and privileged access. These areas are of critical importance, as they can be exploited by cybercriminals seeking unauthorized access to sensitive data.
The Employee Element
One noteworthy revelation is that when asked who poses the greatest risk to data security, the most common response was an organisation’s own employees. Alarmingly, 47% of organisations had to institute regular cybersecurity awareness training for their employees to qualify for a cyber insurance policy.
This finding underscores the fact that employees often constitute the weakest link in an organisation’s security chain. Cyber insurers recognize that the most prevalent initial attack vector remains phishing. By delivering ongoing training and education, organisations can significantly diminish the likelihood of a successful initial compromise, thereby thwarting potential full-scale attacks.
One solution that aids organisations in their quest to bolster cybersecurity awareness and meet the stringent prerequisites of cyber insurance is comprehensive cybersecurity awareness training. Such training is essential to empower employees with the knowledge and skills to identify and respond effectively to cyber threats.
By investing in cybersecurity awareness training, organisations can enhance their overall security posture and align more closely with the expectations of cyber insurance providers. This not only mitigates risks but also contributes to a safer digital environment for all.
The landscape of cyber insurance is evolving rapidly, and organisations must adapt to remain eligible for coverage. Insurers are emphasizing the need for a robust security posture that encompasses various security controls. To meet these requirements, organisations need to prioritize cybersecurity awareness training. This approach can help mitigate risks, enhance employee awareness, and ultimately safeguard against the financial consequences of cyberattacks. By doing so, organisations not only protect their bottom line but also contribute to a more secure digital landscape.